Baltic countries

China drags German firm into Lithuania row – report

Reading Time: < 1 minute

China is allegedly pressuring Continental AG to stop using components made at the German car parts manufacturer’s subsidiary in Lithuania in retaliation for the Baltic country allowing Taiwan to open a de facto embassy in its capital Vilnius, Reuters reports.

Continental AG, one of the world’s largest car parts manufacturers, makes electronic components for the international market in Lithuania. But with the request, the diplomatic spat between China and Lithuania over the latter’s recognition of Taiwan as an independent state has now crossed into the interests of another EU member state. While the company did not confirm that Beijing had asked it to cut ties with Lithuania, industry sources told Reuters that around a dozen companies in Germany have received such requests from China.

German business lobby BDI said the move would negatively impact the value chains of the EU single market. Tensions with Lithuania are also holding up Chinese exports to Germany companies in the small Baltic country. Beijing’s retaliatory move amounts to “a trade boycott that will impact the whole of the EU”, BDI added.

The strong-arming of the German multinational is the latest development in a tit-for-tat between Beijing and Vilnius. Last month China downgraded ties with the Baltic nation and asked trading partners to cut ties with Lithuanian businesses.

Source: Reuters, FT

CET Editor

Recent Posts

Poland to focus on security, regional cooperation during upcoming EU rotating presidency

Polish government representatives outlined the key priorities for its six-month stint holding the presidency of…

6 days ago

Bulgaria, Romania to join Schengen free travel area

Romania and Bulgaria are set to become full members of the Schengen Area on 1…

6 days ago

Slovenia tightens border as EU pledges migration revamp

Slovenia has announced an increase in border controls with Croatia and Hungary, citing national security and escalating concerns over…

6 days ago

Poland leads CEE on media subscriptions – Reuters institute report

Digital news consumption in Central and Eastern Europe (CEE) is transforming, driven by evolving audience…

6 days ago

FDI paints rosier picture for Poland, Romania – OECD report

Central and Eastern European (CEE) countries are still navigating post-pandemic economic challenges amid newer geopolitical…

2 weeks ago

Statistics Austria sees prosperity in decline

Austria's economy has contracted for the sixth quarter in a row, and there has been…

2 weeks ago